Terebinth Capital’s FI Macro FR Retail Hedge Fund has delivered a 12.4% return over the 12 months to the end of May, outperforming its benchmarks — the Short-Term Fixed Interest Composite Index (Stefi) at 8.1% and the FTSE/JSE All Bond Total Return Index (Albi) at 7.72%, according to a report by CityWire.

The report cites the South African retail hedge fund's latest minimum disclosure document as showing that the performance reflects a three-pronged investment framework combining tactical, structural, and strategic fixed income positioning. The fund, which is co-managed by Nomathibana Okello and Erik Nel, operates with a bias to any single asset class, instead emphasising liquidity, flexibility, and macroeconomic insight.

Co-Manager Nomathibana Okello, also Managing Director of Terebinth Capital, highlighted that the fund’s top-down macro views on interest rates and inflation are paired with bottom-up implementation via liquid instruments including government and inflation-linked bonds, IRS, FRAs, FX futures, and money market assets. As of May-end, 78.4% of the fund was invested in bonds and fixed income derivatives, with 21.6% in cash and money markets.

Derivative strategies also played a key role in performance, particularly tactical FX trades around event risks and strategic rate positioning reflecting monetary policy outlooks.